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Let's say Rick is a valet who receives an hourly wage of $8.60, the New Jersey minimum wage. During an hour long scheduled shift, Rick receives $7.00 in tips.
For that hour, Rick's employer can credit $6.47 of the received tips against Rick's hourly wage of $8.60, so they will only pay $2.13 in cash wages for that hour. However, including both the cash wage and the $7.00 in tips received, Rick's total earnings are $9.00.
In the next hour of his shift, Rick receives no tips. Because no tips were received to be credited against the minimum wage, the employer must pay Rick $8.60 in cash wages for this hour.
No, that’s the way the current system works. The proposed bill would make it possible for, in that first hour, instead of Rick earning $9.13 (not $9.00), the employer can instead just pay Rick $8.60, the minimum wage, and pocket the tip for himself or herself if he or she chooses.
$0.53 cents an hour lost by Rick as a result. It could be much worse for servers working in higher end restaurants with higher bills, who could make $20 an hour in tips and could instead now see that all lost and still only make $8.60 for the hour.
Part of me feels that in more extreme cases, restaurant owners wouldn’t be doing stuff like that because word would spread quickly, servers would quit, and no one would want to work there.
Word would spread quickly to whom? The secret waiters webpages where they all discuss tips? Anytime I've been hired to work at a place it takes some time before people generally open up about their financials.
Frankly, some people are desperate, maybe they're leaving an abusive spouse, and feel like the $8.60 is all they can get so they take it. Doesn't make it right.
Word would spread quickly to whom? The secret waiters webpages where they all discuss tips? Anytime I've been hired to work at a place it takes some time before people generally open up about their financials.
Frankly, some people are desperate, maybe they're leaving an abusive spouse, and feel like the $8.60 is all they can get so they take it. Doesn't make it right.
I would think, or at least hope, that if people who were making $20 an hour and all of the sudden now notice it is only $8.60, which is obviously a huge difference, would start making noise one way or another. The move is akin to highway robbery. If all of the sudden, you noticed you are making half as much as before for the same amount of work, don’t you think you would be outraged and start telling people about how you are getting screwed over? I can’t see masses of tipped workers all remaining collectively silent if this starts happening.
You'd think so, but how much outcry have you heard from Indiana Carrier workers about being outsourced? A brief blip a few weeks ago and you hadn't thought about it until just now.
So they can talk about it but they need to have people listening. Right now when wages get cut, $15 an hour seems like too much, or unions get smashed everyone says "well, I don't earn that much, they shouldn't either!" instead of the more appropriate "If they make that much I deserve more for my labor too!"
It used to be said that a rising tide lifted all boats but now everyone's worried about falling off their tiny lifeboat they're pushing others into the water.
It used to be said that a rising tide lifted all boats but now everyone's worried about falling off their tiny lifeboat they're pushing others into the water.
If everyone gets paid more, you just get inflation and no one is paid more.
No, that’s the way the current system works. The proposed bill would make it possible for, in that first hour, instead of Rick earning $9.13 (not $9.00), the employer can instead just pay Rick $8.60, the minimum wage, and pocket the tip for himself or herself if he or she chooses.
$0.53 cents an hour lost by Rick as a result. It could be much worse for servers working in higher end restaurants with higher bills, who could make $20 an hour in tips and could instead now see that all lost and still only make $8.60 for the hour.
Part of me feels that in more extreme cases, restaurant owners wouldn’t be doing stuff like that because word would spread quickly, servers would quit, and no one would want to work there.
I should have done a little more research before asking - got Rick's example from another board discussing the issue. Went to minimumwage.org website a little while ago & saw Rick the Valet is indeed the current example.
I don't think it would be smart for restaurant owners to do this.
I waited tables in college (out of state & back in the early part of the 90's) at a busy family restaurant (Italian/German food). The restaurant was located in between a major mall & a movie theater. Always busy & everyone made more than decent money in tips. This is why you had to "know someone" to get a job at this place.
Provide great service with a smile...but turn your tables over, without rushing people. It behooves both the server & the restaurant owners to do so.
To keep servers' tips & pay minimum wage? It will only behoove the restaurant to have tables turned over quickly, not the server. Good luck with that. There are other minimum wage jobs where one isn't running around on their feet for 6 or 8 hour shifts, doesn't have to deal with "picky" or demanding customers/annoying children/messes/hot kitchens that are chaotic when super busy/idiot chefs or cooks with attitudes (and they ain't Gordon Ramsey), etc. I guess someone would either really have to LOVE being a server or have no other options as far as min. wage jobs go. I wouldn't do it for min. wage. No thanks!
Last edited by Informed Info; 02-13-2018 at 07:57 PM..
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